Independent Banker - April 2024 - 29

Next: Get to know your small-business customers 
4. Host a " block party "
Community banks can attract new
deposits by getting in front of both
existing and potential customers. In
addition to tried-and-true methods-
such as networking and being
involved in their communities-some
banks are taking a more curated and
targeted approach.
First Savings Bank organizes
what it calls " block parties " that
focus on specifi c neighborhoods or
geographic areas within its markets.
Staff members canvas the area, doing
walk-ins to say hello to diff erent
business owners.
" We just say here's who we are,
here's what we do. And if you're
looking for a change, or looking to do
something, then come and see us, "
says Larson.
5. Introduce a promotional rate
Customers have become savvy
when it comes to understanding the
rate environment and how to fi nd
the best rates on CDs and money
market accounts.
One strategy banks are using is to
off er their own special promotional
rates. Those " specials " are often
characterized by an odd month term,
such as a special nine- or 15-month
CD, which allows a bank to off er a
temporary promotional rate while
keeping their sheet rates low. Another
strategy is to off er customers a
premium rate on money market
accounts for customers that bring new
money to the bank.
6. Leverage PPP relationships
Community banks are continuing
to take advantage of new business
opportunities that were created
from making Paycheck Protection
Program (PPP) loans. A lot of the big
banks dropped the ball on the PPP
program, which drove customers
to smaller community banks for
assistance with those loans. Banks on
the receiving end of those PPP loans
made new relationships and captured
data on businesses within their
markets that they are still using today
to generate new business.
7. Train and incentivize your staff
Banks are fi nding ways to incentivize
their staff to sell and cross-sell existing
and new products. The cornerstone
of that starts with training frontline
staff to talk to customers about
their banking needs and explain the
diff erent products the bank off ers.
" Training is [always] a huge part
of this, " says Sung. She notes that
many Abacus Federal employees
came from non-banking backgrounds,
which makes training essential to the
community bank's success.
A sales environment can often
be high-pressure for employees, so
certain community banks would
rather choose to emphasize customer
service and relationships as a pathway
to deposit growth. However, some
banks are now off ering incentive and
bonus compensation programs to
motivate their staff and further new
accounts or deposit growth.
Across its 24 branch locations,
First Savings Bank uses incentive
compensation and sets up friendly
competitions between diff erent
divisions, such as South Dakota
versus Arizona. " Some people are
really motivated by money, and then
others aren't, " says Larson. " So, we
also try to make it fun and also create
some team building. "
Beth Mattson-Teig is a writer
in Minnesota.
Let PM Internal Audit Services
Be Your Third Line of Defense!
We provide a full range of services to cover
every area of your financial institution.
* Fully Outsourced & Co-Sourced Internal Audit
* Information Technology & Cybersecurity Risk Management Services
* SOX & FDICIA Implementation & Testing
* Loan Review
* 3rdParty & Regulatory Issue Validation
* Internal Audit Quality Assurance Assessments
CONTACT OUR PRESIDENT & CEO JOEL DUNN TODAY!
jdunn@pminternalaudit.com
pminternalaudit.com
http://www.pminternalaudit.com
Independent Banker - April 2024

Table of Contents for the Digital Edition of Independent Banker - April 2024
